To each their own. I'm logged in to at least 5 different hosts at any given time, often many more. Without user/hostname in the prompt and the term-title I'd be completely lost.
In your case, your goal is to reduce the cognitive weight of your environment.
A host name in the prompt is one more string you need to read and it's a user interface mistake as a term is for entering commands and reading their output.
I've seen people successfully using different background colors for visually telling their terms apart. It's a very good solution as there's no reading cost.
I personally use workspaces to sort terms by host and this can be very powerful if combined with tagging. This also works well but I suspect it's linked to my workflow.
